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Texas Income Tax Calculator

Overview of Texas Taxes

Texas is often considered tax-friendly because the state does not collect any income tax. But there are other taxes that Texans have to pay. Retired? Use our Retirement Income Tax Calculator.

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Your Income Taxes Breakdown

Tax Type

Marginal Tax Rate

Effective Tax Rate

2018 Taxes*

Federal

FICA

State

Local

Total Income Taxes

Income After Taxes

Retirement Contributions

Take-Home Pay

* These are the taxes owed for the 2018 - 2019 filing season.

Changes to Your Federal Income Taxes Under the 2018 Tax Reform

Your marginal federal income tax rate

Your effective federal income tax rate

Your federal income taxes

Total Estimated 2018 Tax Burden

Income Tax $

Sales Tax $

Fuel Tax $

Property Tax$

Total Estimated Tax Burden $

Percent of income to taxes = %

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Our Tax Expert

Jennifer Mansfield, CPATax

Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.

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Texas state tax quick facts

Income tax: none

Sales tax: 6.25% - 8.25%

Property tax: 1.83% average effective rate

Gas tax: 20 cents per gallon of regular gasoline and diesel

The Lone Star State is one of seven that collect no income taxes of any kind. For that reason, it often ranks high in lists of the most tax-friendly states, but its sales and property taxes aren’t quite as kind to the average taxpayer’s wallet. In fact, according to the Tax Foundation, its combined state and average local sales tax rate is 8.17%, 12th-highest in the country. The average effective property tax rate of 1.83% in Texas is higher than all but five states.

Texas Has No Income Tax

Don’t mess with Texas - and once you’re there, don’t mess with a state income tax return, either. It is one of seven states with no taxes on income of any kind. Of course, you’ll still need to pay federal taxes and file a federal return.

Texas Sales Tax

While Texas’s statewide sales tax rate is a relatively moderate 6.25%, total sales taxes (including county and city taxes) of up to 8.25% are allowed, and in most major cities this limit is reached. Dallas, Houston and San Antonio all have combined state and local sales tax rates of 8.25%, for example. Here are the rates for every county in Texas, as well as the major cities. (Note that while most of Austin is subject to the 8.25% sales tax listed below, the part of the city that lies in Hays County, and not Travis or Williamson counties, will be under a lower rate of 7.25%.)

Texas also charges a number of additional fees and taxes on the sales of certain goods. Notable examples include its hotel occupancy tax which is 6% the cost of a hotel room and a manufactured housing tax of 3.25% of the house’s sale price.

Some services are also subject to sales tax in Texas. Among the types of services for which you might have to pay sales tax are entertainment like live music or movie tickets, television service (whether cable or satellite), internet access (although the first $25 of your internet bill is exempt) and any kind of automobile parking or storage services.

Texas Alcohol and Tobacco Taxes

Texas has a tax of 8.25% on all alcoholic beverages and a tax on tobacco products that totals $1.41 for a pack of 20 cigarettes.

Texas Property Tax

Property taxes in Texas are among the highest in the country. Effective property tax rates average 1.83% and Texan households pay an average of $2,775 on property taxes.

Property tax rates have become a contentious issue between local governments and the state. Some state representatives want to cap rates, while cities and counties oppose that measure. That’s because, in most areas, property taxes are the primary source of local revenue.

In Dallas County, for example, the average effective rate is 1.99%. (Note: Effective rates are property taxes as a percentage of the home’s market value. Most areas charge actual rates based on a property’s “taxable value,” which is determined by the taxing authority, and usually based on but not equal to the market value.) In Harris County, where Houston is located, the average effective property tax rate is 2.09%. That means thousands of dollars a year in property taxes for the typical Texas homeowner.

But high property taxes don’t necessarily mean you should be a renter for life. If you are thinking about purchasing a home in Texas, take a look at our mortgage guide for rates and other information about getting a mortgage in Texas.

Texas Gasoline Tax

According the American Petroleum Institute, state fees and taxes on purchases of regular gasoline in Texas total 20 cents per gallon. That’s sixth-lowest in the country.

Texas Estate Tax

As of January 1, 2005, there is no inheritance tax in Texas. Estates with a date of death before then must still pay the previously existing tax however.

Other Notable Taxes in Texas

Texas has an oyster sales fee. Shellfish dealers in Texas are required to pay a tax of $1 per 300 pounds of oysters taken from Texas waters.

Calculate Your Income Taxes in These Other States

Places with the Lowest Tax Burden

Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.

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Fuel Tax

Methodology

Where you live can have a big impact on both which types of taxes you have to pay each year and how much money you spend on them. SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country and ranked the lowest to highest tax burden.

To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.

In order to determine sales tax burden we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income less income tax. This product is then multiplied by 35% to estimate the sales tax paid.

For property taxes, we compared the median property taxes paid in each county.

For fuel taxes, we first distributed statewide vehicle miles traveled down to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.

We then added the dollar amount for income, sales, property and fuel taxes to calculate a total tax burden. Finally, we created the Tax Burden Index in order to show how each county in the country compares to the county with the lowest tax burden (that is the county with a Tax Burden Index of 100).